Ask Terry Questions 23 year old daughter’s 1st financial investment

23 year old daughter’s 1st financial investment

By Terry Savage on September 22, 2014 | Investments

Hi Terry, I attended your AARP presentation last week in Schaumburg. GREAT JOB!!
We have a 23 year old daughter who accepted a new position back in March.
She is making a pretty good salary ($43K). She has signed up for their 401K plan. However, stills has
a nice nest egg of about $12K just sitting on her bank account. Any sugestions on to where she can
invest this money (perhaps a mutual fund stock or index fund)??? THANKS Terry. Keep up the good work!!

Terry Says:  Call me old-fashioned, but I think she should leave that money in the bank — and keep adding to it, while setting some goals.  She might want to move into an apartment and need furniture.  Or she might need a car.  Or she might enjoy just having the safety net.  The fact that she has accumulated this much money at age 23 shows me that she won’t blow it on a whim!

Meanwhile, she should put a LOT of money into the 40l(k) plan — at least up to the point that the company matches her contribution.  Then she can invest more aggressively in the stock funds provided, knowing this money has a LONG time to grow on her behalf.   That strikes a nice balance in my opinnion.



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